Australia’s education minister makes no apologies for “managed system”

Clare defended his push for a “managed system” for international education, telling the AFR Higher Education Summit on August 19 that he makes no apologies for the move.

Clare’s attendance at the Sydney conference came weeks after the Australian government announced an increase to its National Planning Level (NPL) for 2026 – currently set at 270,000 new international student places. This will increase to 295,000 next year, in slight changes to what has been described by some as a “de facto cap” on international student enrolments.

Under the system, institutions are given an individual allocation of New Overseas Student Commencements (NOSCs). Study visas for each institution are prioritised until it reaches 80% of its NOSC allocation, after which visas are processed more slowly.

“What we sought to do last year and what we have done is reset the system so that universities know that we will manage the number of students that they have… It isn’t a hard cap in the sense that once you hit the number then it stops,” clarified Clare.

“But Ministerial Direction 111 gives Julian [Hill] and the team the ability to fast track people to 80% and then it runs in the normal pattern after that. So some universities are above it; some are below it… Universities, by and large, I think are at it or just above. VET is a bit down, which is why we’re going to hit 270[k],” explained Clare.

Looking ahead, the minister said the newly launched Australian Tertiary Education Committee (ATEC), currently operating in an interim capacity, will work university by university to ensure institutions meet – but do not exceed – their 2027 student allocations.

“The ATEC team will be able to, in the compacts that they design with each university, help to make sure that universities meet but don’t exceed those numbers in 2027.”

Data presented to providers from the Department of Education as part of a recent webinar showed international student numbers are tracking close to the 2025 NPL of 270,000 overall. But there are differences between sectors.

As of August 1 2025, NOSCs that have commenced study are at 77% of the overall NPL. Higher education is at 83%, while VET is at 60%.

The department also outlined that the pipeline of indicative NOSCs (which includes students yet to commence their studies) is at 96% of the overall NPL. Higher education is at 105%, while VET is at 79%.

And as of August 1 2025, some 259 providers have reached their MD 111 prioritisation threshold (80% of their allocation). This includes:

• 26 of 38 public universities
• five of 16 TAFEs
• 75 of 140 other higher education/dual sector providers
• 153 of 977 VET providers (including 128/762 providers with allocations of 100 NOSCs or less)

Clare said the extra 25,000 international student spots for 2026 are “proof” of the government’s commitment to building growth into the system “in a managed way”.

The ATEC team will be able to, in the compacts that they design with each university, help to make sure that universities meet but don’t exceed those numbers in 2027
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“I believe the first and most important responsibility of universities is to educate Australian students. And I don’t resile from that. But I’ve also been consistent in saying that international education is important,” Clare told the audience.

“It doesn’t just make universities money; it makes an important financial contribution to the country. Even more importantly, it makes us friends because when students come here to study and they fall in love with Australia they take that love and affection for us back home. That is a diplomatic super power.”

The minister also highlighted opportunities in Transnational Education (TNE), stressing that international education “is not just a one-way street”.

“There’s an opportunity for universities to spread their wings and set up campuses or to educate people in country as well.”

But Clare also encouraged stakeholders to look beyond branch campuses – picking out RMIT’s twinning degree with BITS Pilani as a “classic example” of what Australian providers need to be doing more of.

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